72. Annual contribution payable to Board.—(1) The mutawalli of every 1
[waqf], the net annual
income of which is not less than five thousand rupees, shall pay annually, out of the net annual income
derived by the 1
[waqf], such contributions, not exceeding seven per cent. of such annual income, as may
be prescribed, to the Board for the services rendered by such Board to the 1
[waqf].
Explanation I .—For the purposes of this Act, “net annual income” shall mean the gross income of
the 1
[waqf] from all sources, including nazars and offerings which do not amount to contributions to the
corpus of the 3
[auqaf], in a year after deducting therefrom the following, namely:—
(i) the land revenue paid by it to the Government;
(ii) the rates, cesses, taxes and licence fees, paid by it to the Government or any local authority;
(iii) expenditure incurred for all or any of the 4
[in respect of lands directly under cultivation by
the mutawalli for the benefit of the waqf], namely:—
(a) maintenance of, or repairs to, irrigation works, which shall not include the capital cost of
irrigation;
(b) seeds or seedlings;
(c) manure;
(d) purchase and maintenance of agricultural implements;
(e) purchase and maintenance of cattle for cultivation;
(f) wages for ploughing, watering, sowing, transplanting, harvesting, threshing and other
agricultural operations:
Provided that the total deduction in respect of an expenditure incurred under this clause shall not
exceed 5
[twenty per cent.] of the income derived from lands belonging to the 1
[waqf]:
1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013).
2. Subs. by s. 40, ibid., for “73” (w.e.f. 1-11-2013).
3. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013).
4. Subs. by s. 41, ibid., for “following purposes” (w.e.f. 1-11-2013).
5. Subs. by s. 41, ibid., for “ten per cent.” (w.e.f. 1-11-2013).
37
1
[Provided further that no such deduction shall be permitted in respect of waqf land given on
lease, by whatever name called, whether batai or share cropping or any other name.]
(iv) expenditure on sundry repairs to rented buildings, not exceeding five per cent. of the annual
rent derived therefrom, or the actual expenditure, whichever is less;
(v) sale proceeds of immovable properties or rights relating to, or arising out of immovable
properties, if such proceeds are reinvested to earn income for the 2
[waqf]:
Provided that the following items of receipts shall not be deemed to be income for the purposes of
this section, namely:—
(a) advances and deposits recovered and loans taken or recovered;
(b) deposits made as security by employees, lessees or contractors and other deposits, if any;
(c) withdrawals from banks or of investments;
(d) amounts recovered towards costs awarded by courts;
(e) sale proceeds of religious books and publications where such sales are undertaken as an
un-remunerative enterprise with a view to propagating religion;
(f) donations in cash or kind or offerings made by the donors as contribution to the corpus of
the 2
[waqf]:
Provided that interest on income, if any, accruing from such donations or offerings shall be
taken into account in calculating the gross annual income;
(g) voluntary contributions received in cash or kind for a specific service to be performed by
the 2
[waqf] and expended on such service;
(h) audit recoveries;
Explanation II.—In determining the net annual income for the purposes of this section, only the net
profit derived by any 2
[waqf] from its remunerative undertakings, if any, shall be taken as income, and in
respect of its non-remunerative undertakings, such as, schools, colleges, hospitals, poor homes,
orphanages or any other similar institutions, the grants given by the Government or any local authority or
donations received from the public or fees collected from the pupils of educational institutions shall not
be taken as income.
(2) The Board may in the case of any mosque or orphanage or any particular 2
[waqf] reduce or remit
such contribution for such time as it thinks fit.
(3) The mutawalli of a 2
[waqf] may realise the contributions payable by him under sub-section (1)
from the various persons entitled to received any pecuniary or other material benefit from the 2
[waqf], but
the sum realisable from any one of such persons shall not exceed such amount as shall bear to the total
contribution payable, the same proportion, as the value of the benefits receivable by such person bears to
the entire net annual income of the 2
[waqf]:
Provided that if there is any income of the 2
[waqf] available in excess of the amount payable as dues
under this Act, other than as the contribution under sub-section (1), and in excess of the amount payable
under the 2
[waqf] deed, the contribution shall be paid out of such income.
(4) The contribution payable under sub-section (1) in respect of a 2
[waqf] shall, subject to the prior
payment of any dues to the Government or any local authority or of any other statutory first charge on the
2
[waqf] property or the income thereof, be a first charge on the income of the 2
[waqf] and shall be
recoverable, on a certificate issued by the Board after giving the mutawalli concerned an opportunity of
being heard, as an arrear of land revenue.
1. Ins. by Act 27 of 2013, s. 41 (w.e.f. 1-11-2013).
2. Subs. by s. 4, ibid., for “wakf” (w.e.f. 1-11-2013).
38
(5) If a mutawalli realises the income of the 1
[waqf] and refuses to pay or does not pay such
contribution, he shall also be personally liable for such contribution which may be realised from his
person or property in the manner aforesaid.
(6) Where, after the commencement of this Act, the mutawalli of a 1
[waqf] fails to submit a return of
the net annual income of the 1
[waqf] within the time specified therefor or submits a return which, in the
opinion of the Chief Executive Officer is incorrect or false in any material particular, or which does not
comply with the provisions of this Act or any rule or order made thereunder, the Chief Executive Officer
may assess the net annual income of the 1
[waqf] to the best of his judgment or revise the net annual
income as shown in the return submitted by the mutawalli and the net annual income as so assessed or
revised shall be deemed to be the net annual income of the 1
[waqf] for the purposes of this section:
Provided that no assessment of net annual income or revision of return submitted by mutawalli shall
be made except after giving a notice to the mutawalli calling upon him to show cause, within the time
specified in the notice, as to why such assessment or revision of the return shall not be made and every
such assessment or revision shall be made after considering the reply if any, given by the mutawalli.
(7) Any mutawalli who is aggrieved by the assessment or revision made by the Chief Executive
Officer, under sub-section (6), may prefer an appeal to the Board within thirty days from the date of the
receipt of the assessment or revision of return and the Board may, after giving the appellant a reasonable
opportunity of being heard, confirm, reverse or modify the assessment or revision or the return and the
decision of the Board thereon shall be final.
(8) If, for any reason, the contribution or any portion thereof leviable under this section has escaped
assessment in any year, whether before or after the commencement of this Act, the Chief Executive
Officer may, within five years from the last date of the year to which such escaped assessment relates
serve upon the mutawalli a notice assessing him with the contribution or portion thereof which had
escaped assessment, and demanding payment thereof within thirty days from the date of service of such
notice, and the provisions of this Act and the rules made thereunder, shall, as far as may be, apply as if the
assessments were made under this Act, in the first instance.
73. Power of Chief Executive Officer to direct banks or other person to make
payments.—(1) Notwithstanding anything contained in any other law for the time being in force, the
Chief Executive Officer, if he is satisfied that it is necessary and expedient so to do, make an order
directing any bank in which, or any person with whom any money belonging to a 1
[waqf] is deposited, to
pay the contribution, leviable under section 72, out of such money, as may be standing to the credit of the
1
[waqf] in such bank or may be deposited with such person, or out of the moneys which may, from time
to time, be received by bank or other person for or on behalf of the 1
[waqf] by way of deposit, and on
receipt of such orders, the bank or the other person, as the case may be, shall, when no appeal has been
preferred under sub-section (3), comply with such orders, or where an appeal has been preferred
under sub-section (3), shall comply, with the orders made by the Tribunal on such appeal.
(2) Every payment made by a bank or other person in pursuance of any order made under
sub-section (1), shall operate as a full discharge of the liability of such bank or other person in relation to
the sum so paid.
(3) Any bank or other person who is ordered under sub-section (1) to make any payment may, within
thirty days from the date of the order, prefer an appeal against such order to the Tribunal and the decision
of the Tribunal on such appeal shall be final.
(4) Every officer of the bank or other person who fails, without any reasonable excuse, to comply
with the order made under sub-section (1) or, as the case may be, under sub-section (3), shall be
punishable with imprisonment for a term which may extend to six months or with fine which may extend
to eight thousand rupees, or with both.
74. Deduction of contribution from perpetual annuity payable to the 1
[waqf].—(1) Every
authority empowered to disburse any perpetual annuity payable to a 1
[waqf] under any law relating to the
abolition of zamindars or jagirs, or laying down land ceilings, shall, on receipt of a certificate from the
Chief Executive Officer, specifying the amount of contribution payable by the 1
[waqf]
1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013).
39
under section 72 which remains unpaid, deduct before making payment of the perpetual annuity to the
1
[waqf], the amount specified in such certificate and remit the amount so deducted to the Chief Executive
Officer.
(2) Every amount remitted under sub-section (1) to the Chief Executive Officer shall be deemed to be
a payment made by the 1
[waqf] and shall, to the extent of the amount so remitted, operate as a full
discharge of the liability of such authority with regard to the payment of the perpetual annuity.
75. Power of board to borrow.—(1) For the purpose of giving effect to the provisions of this Act,
the Board may, with the previous sanction of the State Government, borrow such sum of money and on
such terms and conditions as the State Government may determine.
(2) The Board shall repay the money borrowed, together with any interest or costs due in respect
thereof, according to the terms and conditions of the loan.
76. Mutawalli not to lend or borrow moneys without sanction.—(1) No mutawalli, Executive
Officer or other person in charge of the administration of a
1
[waqf] shall lend any money belonging to the
1
[waqf] or any 1
[waqf] property or borrow any money for the purposes of the 1
[waqf] except with the
previous sanction of the Board:
Provided that no such sanction is necessary if there is an express provision in the deed of 1
[waqf] for
such borrowing or lending, as the case may be.
(2) The Board may, while according sanction, specify any terms and conditions subject to which the
person referred to in sub-section (1) is authorised by him to lend or borrow any money or lend any other
1
[waqf] property.
(3) Where any money is lent or borrowed, or other 1
[waqf] property is lent in contravention of the
provisions of this section, it shall be lawful for the Chief Executive Officer,—
(a) to recover an amount equal to the amount which has been so lent or borrowed, together with
interest due thereon, from the personal funds of the person by whom such amount was lent or
borrowed;
(b) to recover the possession of the 1
[waqf] property lent in contravention of the provisions of this
Act, from the person to whom it was lent, or from persons who claim title to such property through
the person to whom such property was lent.
77. 1
[Waqf] Fund.—(1) All moneys received or realised by the Board under this Act and all other
moneys received as donations, benefactions or grants by the Board shall form a fund to be called the
1
[Waqf] Fund.
(2) All moneys received by the Board, as donations, benefactions and grants shall be deposited and
accounted for under a separate sub-head.
(3) Subject to any rules that may be made by the State Government in this behalf, the 1
[Waqf] Fund
shall be under the control of the Board, so, however, that the 1
[Waqf] Fund under the control of common
1
[Waqf] Board shall be subject to rules, if any, made in this behalf by the Central Government.
(4) The 1
[Waqf] Fund shall be applied to—
(a) repayment of any loan incurred under section 75 and payment of interest thereon;
(b) payment of the cost of audit of the 1
[Waqf] Fund and the accounts of 2
[auqaf];
(c) payment of the salary and allowances to the officers and staff of the Board;
(d) payment of traveling allowances to the Chairperson, members, of the Board;
(e) payment of all expenses incurred by the Board in the performance of the duties imposed, and
the exercise of the powers conferred, by or under this Act;
(f) payment of all expenses incurred by the Board for the discharge of any obligation imposed on
it by or under any law for the time being in force.
1. Subs. by Act 27 of 2013, s. 4, for “wakf” (w.e.f. 1-11-2013).
2. Subs. by s. 4, ibid., for “wakfs” (w.e.f. 1-11-2013).
40
1
[(g) payment of maintenance to Muslim women as ordered by a court of competent jurisdiction
under the provisions of the Muslim Women (Protection of Rights on Divorce) Act, 1986
(25 of 1986).]
(5) If any balance remains after meeting the expenditure referred to in sub-section (4), the Board may
use any portion of such balance for the preservation and protection of 2
[waqf] properties or for such other
purposes as it may deem fit.
78. Budget of Board.—(1) The Board shall in every year prepare, in such form and at such time as
may be prescribed, a budget for the next financial year showing the estimated receipts and expenditure
during that financial year and forward a copy of the same to the State Government.
(2) On receipt of the budget forwarded to it under sub-section (1), the State Government shall
examine the same and suggest such alterations, corrections or modifications to be made therein as it may
think fit and forward such suggestions to the Board for its consideration.
(3) On receipt of the suggestions from the State Government the Board may make written
representations to that Government with regard to the alterations, corrections or modifications suggested
by that Government and the State Government shall, after considering such representations,
communicate, within a period of three weeks from the date of receipt thereof, to the Board its final
decision in relation to the matter and the decision of the State Government shall be final.
(4) On receipt of the decision of the State Government under sub-section (3), the Board shall
incorporate in its budget all the alterations, corrections, modifications finally suggested by the State
Government and the budget as so altered, corrected or modified, shall be the budget which shall be passed
by the Board.
79. Accounts of Board.—The Board shall cause to be maintained such books of account and other
books in relation to its accounts in such form and in such manner as may be provided by regulations.
80. Audit of accounts of Board.—(1) The accounts of the Board shall be audited and examined
annually by such auditor as may be appointed by the State Government.
(2) The auditor shall submit his report to the State Government and the report of the auditor shall,
among other things, specify whether the accounts of every 2
[waqf] under the direct management of the
Board have been kept separately and whether such accounts have been audited annually by the State
Examiner of Local Funds and shall also specify all cases of irregular, illegal or improper expenditure or of
failure to recover money or other property caused by neglect or misconduct and any other matter which
the auditor considers it necessary to report; and the report shall also contain the name of any person who,
in the opinion of the auditor is responsible for such expenditure or failure and the auditor shall in every
such case certify the amount of such expenditure or loss as due from such person.
(3) The cost of the audit shall be paid from the 2
[Waqf] Fund.
81. State Government to pass orders on auditor’s report.—The State Government shall examine
the auditor’s report and may call for the explanation of any person in regard to any matter mentioned
therein, and shall pass such orders on the report as it thinks fit 3
[and a copy of the said auditor’s report,
along with orders shall be forwarded by the State Government to the Council within a period of thirty
days of laying of such report before each House of the State Legislature where it consists of two Houses
or where such Legislatures consist of one House, before that House].
82. Dues of Board to be recovered as arrears of land revenue.—(1) Every sum certified to be due
from any person by an auditor in his report under section 80, be paid by such person within sixty days
after service of a demand notice by the Board.
(2) If such payment is not made in accordance with the provisions of sub-section (1), the sum payable
may, on a certificate issued by the Board, after giving the person concerned an opportunity of being
heard, be recovered as an arrear of land revenue.